Feds, banks lock horns
Major rural lenders are welcoming a call by farmers for the Commerce Commission to investigate their net-zero emissions target.
Could there finally be positive news for the red meat sector after a period of challenging economic conditions?
According to the latest Bank of New Zealand (BNZ) Rural Wrap report, the answer is maybe.
The report states that beef and lamb prices have risen over the past four months, with beef up 16% and lamb up 21%.
“We say this not to suggest that prices are strong, far from it in lamb’s case, but rather to acknowledge some changing dynamics of late,” the report states. “Rising prices at this time of year is not unusual, but the gains over recent months have been a bit more than normal.”
According to the bank, part of the price gain is due to a tightening domestic supply, as evidenced by recent strength in store markets. However, there have also been pockets of price improvement on the export market.
“In NZ, lamb and cattle slaughter numbers have dropped significantly below year earlier levels, tightening local supply and putting upward pressure on prices.”
The report states that an early kill, especially for lamb, saw slaughter numbers for both lamb and cattle tracking around a third below figures for a year earlier in July.
Despite the price rises, beef and lamb find themselves in two different positions from a historical perspective.
Lamb prices are low and are currently approximately 13% below their five-year average. Meanwhile, beef prices are at record levels, about 14% above their fiveyear average.
Beef produced from cattle from New Zealand's dairy sector could provide reductions in greenhouse gas emissions of up to 48, compared to the average for beef cattle, a new study by AgResearch has found.
The Rabobank Rural Confidence Survey found farmers' expectations for their own business operations had also improved, with the net reading on this measure lifting to +37% from +19% previously.
Confidence is flowing back into the farming sector on the back of higher dairy and meat prices, easing interest rates and a more farmer-friendly regulatory environment.
Ham has edged out lamb to become Kiwis’ top choice for their Christmas tables this year.
Dairy Women’s Network (DWN) has announced real estate company Bayleys will be the naming partner for its 2025 conference.
As New Zealand enters the summer months, rural insurer FMG is reminding farmers and growers to take extra care with a new campaign.
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